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| Kingfisher aims for £500m profit boost | Kingfisher aims for £500m profit boost |
| (about 3 hours later) | |
| Kingfisher, which owns B&Q, has announced a push to increase annual pre-tax profits by £500m within five years and return £600m to shareholders. | Kingfisher, which owns B&Q, has announced a push to increase annual pre-tax profits by £500m within five years and return £600m to shareholders. |
| Chief executive Véronique Laury said the aim was to "leverage the scale of the business by becoming a single, unified company". | Chief executive Véronique Laury said the aim was to "leverage the scale of the business by becoming a single, unified company". |
| Details of the "ONE Kingfisher" plan came ahead of an investor day. | Details of the "ONE Kingfisher" plan came ahead of an investor day. |
| The retailer, which also owns Screwfix, will face more competition following the sale of Homebase to Wesfarmers. | The retailer, which also owns Screwfix, will face more competition following the sale of Homebase to Wesfarmers. |
| The company plans to rebrand the DIY chain as Bunnings, the same name as its successful Australian business, and revamp stores. | The company plans to rebrand the DIY chain as Bunnings, the same name as its successful Australian business, and revamp stores. |
| Ms Laury said improving Kingfisher's digital capability was one of its priorities. | Ms Laury said improving Kingfisher's digital capability was one of its priorities. |
| Clive Black, head of research at Shore Capital, said: "It looks like Kingfisher is coming to terms with the realities of the limitations of large shops, so a focus upon the digital age. We think shareholders will welcome the focus on digital over stores and the return of cash, albeit the exceptional costs are substantial." | Clive Black, head of research at Shore Capital, said: "It looks like Kingfisher is coming to terms with the realities of the limitations of large shops, so a focus upon the digital age. We think shareholders will welcome the focus on digital over stores and the return of cash, albeit the exceptional costs are substantial." |
| Independent retail analyst Nick Bubb said that the plan's goals would involve costs of up to £800m. | Independent retail analyst Nick Bubb said that the plan's goals would involve costs of up to £800m. |
| "The benefits aren't as clear-cut as you might think, although the news that Kingfisher also intend to return about £600m of capital to shareholders over the next three years (via share buybacks) will provide some comfort," he said. | "The benefits aren't as clear-cut as you might think, although the news that Kingfisher also intend to return about £600m of capital to shareholders over the next three years (via share buybacks) will provide some comfort," he said. |
| Shares fell more than 6% to 324p in afternoon trading on Monday, making it the biggest faller on the FTSE 100. | |
| Investec analyst Kate Calvert said the potential returns for shareholders outlined in the plan did not outweigh the risks involved. | |
| Board change | |
| "There are a lot of moving parts and no guarantee that all the costs will fall out and the profits come through," she said. | |
| Kingfisher also said Rakhi Parekh, a former Amazon UK executive, had been appointed a non-executive director. | Kingfisher also said Rakhi Parekh, a former Amazon UK executive, had been appointed a non-executive director. |
| Ms Laury said Ms Parekh's extensive experience in digital and multichannel retailing would be vital to the company's plans. | Ms Laury said Ms Parekh's extensive experience in digital and multichannel retailing would be vital to the company's plans. |
| Kingfisher said in November that profit for the 13 weeks to 1 November fell 11.8% to £225m, with total sales down 3.6%. | Kingfisher said in November that profit for the 13 weeks to 1 November fell 11.8% to £225m, with total sales down 3.6%. |
| In France, where is owns chains including Castorama, sales slid by 9.3%, but the poor performance was partially offset by a 4.8% rise in the UK. | In France, where is owns chains including Castorama, sales slid by 9.3%, but the poor performance was partially offset by a 4.8% rise in the UK. |